Owners of new or growing small businesses often hire employees to perform day-to-day tasks such as organizing files, accounting and production. Hiring permanent full-time employees is a large commitment, which prompts some companies to hire temporary workers to fulfill specific roles until those roles are no longer necessary. Hiring temporary workers can be advantageous due to the differences in pay and benefits between permanent and temporary employees.

Permanent Employee Benefits

Permanent employees receive job benefits directly from their employers. Benefit packages vary from one company to another, but they often include paid time off, health insurance coverage, dental insurance and retirement packages such as 401(k) plans. Other common types of benefits include health club memberships, access to company vehicles, educational assistance and meal plans. Providing such benefits to employees is costly, but top candidates may expect to receive a competitive benefits package.

Staffing Agency Workers

Temporary workers fall into two general categories: workers hired through staffing agencies and workers hired directly by employers. Staffing agencies are businesses that help temporary workers connect with companies that need temporary labor. When a worker finds a job through a staffing agency, the company he works for pays the agency a certain contracted rate, then the agency pays the employee his wages. Workers who obtain jobs through staffing agencies don't receive benefits from the companies at which they're working, because they're technically employed by their staffing agencies. Staffing agencies may provide certain benefits to temporary workers, but the benefits provided are usually minimal.

Other Temporary Workers

Some companies hire temporary workers directly rather than hiring through staffing agencies. For example, companies that have busy seasons may hire temporary workers for a single season to deal with increased demand. Directly hired temporary workers, including seasonal workers, often don't receive any benefits. Some employers may offer certain basic benefits to temporary workers, but other benefits, such as retirement plans and pensions, may only be available to permanent employees.

Considerations

Companies hiring temporary workers, either through a staffing company or directly, can save on labor expenses by avoiding the high cost of providing benefits. In addition, temporary positions can help businesses find new permanent workers. If a temporary worker performs well, the company can offer her a permanent position. On the downside, the company loses all of the experience and training a temporary worker has amassed once that worker moves on. Consequently, temporary workers do little to improve the company's talent pool.

About the Author

Gregory Hamel has been a writer since September 2008 and has also authored three novels. He has a Bachelor of Arts in economics from St. Olaf College. Hamel maintains a blog focused on massive open online courses and computer programming.